Title transfer is the legal process of transferring ownership rights from seller to buyer in commodity transactions. This process involves documentation, quality verification, quantity confirmation, and payment settlement. Title transfer timing affects risk allocation, insurance coverage, and legal liability between trading parties.

Title transfer procedures vary by commodity type, location, and contract terms, with specific requirements for documentation, inspection, and delivery procedures. Understanding title transfer mechanisms helps assess transaction risks, delivery obligations, and legal protections in physical commodity trading.

Real-world example: Crude oil title transfers from seller to buyer upon loading completion at the export terminal, with bills of lading serving as title documents that enable ownership transfer and cargo insurance during ocean transportation.